GST 2.0: How Air Conditioners, Refrigerators, TVs Will Get Cheaper From Today

GST 2.0: Major Shift Makes Home Appliances More Affordable Starting Today

GST 2.0: Household appliances including air conditioners, refrigerators, and washing machines will now be taxed at 18% GST instead of 28%.

New Delhi:

India has launched GST 2.0 effective September 22, marking a significant overhaul of the country's taxation system. The GST Council has streamlined the tax structure into three primary slabs: 5% for essential items, 18% for standard goods, and 40% for luxury or sin products, eliminating the previous complicated categories.

The electronics industry stands as a major beneficiary of this reform. Home appliances that were previously taxed at 28% - including air conditioners, refrigerators, washing machines, dishwashers, and large-screen televisions - will now fall under the 18% GST bracket, resulting in substantial price reductions for middle-class consumers.

However, not all electronic products received tax relief. Mobile phones and laptops continue to attract 18% GST, keeping their prices essentially unchanged. Consumers hoping for price drops on these devices will need to look to seasonal promotions rather than tax benefits.

The revised GST structure is designed to simplify compliance and create more transparent pricing for consumers:

5%: Essential products

18%: Standard goods, now including many household appliances

40%: Luxury and sin items, such as high-end motorcycles, carbonated drinks, and certain discretionary imports

This restructured system ensures essential commodities remain affordable, standard products have rationalized pricing, and luxury items continue to bear higher taxation.

Under the new GST framework, consumer electronics will experience notable price reductions:

Air Conditioners and Dishwashers: Anticipated price decreases of Rs 3,500-Rs 4,500 per unit

Refrigerators and Washing Machines: Prices likely to drop by 8-9%, making mid-range models more accessible

Large-screen TVs (exceeding 32 inches): Significant price cuts expected, perfectly timed for the upcoming festival season

These reductions are particularly beneficial for households planning to upgrade appliances during the festive period.

Despite widespread tax relief for appliances, GST on mobile phones and laptops remains unchanged at 18%. This decision reflects their existing standard tax classification, substantial market presence, and revenue implications for the government. The mobile and laptop sectors benefit more from Production Linked Incentive (PLI) programs and import duty adjustments rather than GST reductions.

For consumers, GST 2.0 delivers clear advantages: premium appliances become more affordable, festive purchases offer better value, and households gain increased flexibility to modernize their homes. Meanwhile, retailers and manufacturers can anticipate increased consumer demand, while the government maintains fiscal balance.